Core Viewpoint - PennantPark Investment Corporation reported its financial results for the first quarter ended December 31, 2024, highlighting a stable net asset value and strong investment performance despite a slight decrease in net investment income compared to the previous year [1][2][6]. Financial Highlights - The investment portfolio totaled $1,298.1 million, with net assets of $494.3 million and a GAAP net asset value per share of $7.57, reflecting a quarterly increase of 0.1% [2][31]. - Net investment income for the quarter was $13.0 million, or $0.20 per share, down from $15.7 million, or $0.24 per share, in the same quarter of the previous year [16][32]. - Total investment income was $34.2 million, slightly lower than $34.3 million in the prior year, primarily due to changes in the portfolio and investment yields [14][32]. Portfolio Activity - The company made purchases of investments totaling $295.7 million and sales and repayments of investments amounting to $353.7 million during the quarter [8][11]. - The portfolio consisted of 158 companies with an average investment size of $7.4 million, and the weighted average yield on interest-bearing debt investments was 12.0% [6][10]. Investment Income and Expenses - Investment income was derived from various sources, including $25.2 million from first lien secured debt and $5.9 million from other investments [14][32]. - Total expenses for the quarter were $21.2 million, an increase from $18.7 million in the previous year, mainly due to higher debt-related interest and expenses [15][32]. Net Realized and Unrealized Gains - The company reported net realized losses of $(2.6) million for the quarter, compared to a gain of $1.8 million in the same period last year [17][32]. - There was a net change in unrealized appreciation of $2.4 million, leading to total net unrealized appreciation of $13.6 million as of December 31, 2024 [18][32]. Liquidity and Capital Resources - As of December 31, 2024, the company had $464.5 million in outstanding borrowings under the Truist Credit Facility, with a weighted average interest rate of 6.8% [23][24]. - Cash and cash equivalents available for investing and corporate purposes were $55.9 million [24][32]. Distributions - The company declared distributions of $0.24 per share for a total of $15.7 million during the quarter, an increase from $0.21 per share totaling $13.7 million in the previous year [27][32]. Recent Developments - The Truist Credit Facility was upsized to $500.0 million from $475 million in February 2025, enhancing the company's liquidity position [28].

Group 1 - PennantPark Investment Corporation will report its financial results for the first fiscal quarter ended December 31, 2024 on February 10, 2025 [1] - A conference call to discuss the financial results will be held on February 11, 2025 at 12:00 p.m. Eastern Time, with access details provided for interested parties [2] - PennantPark Investment Corporation primarily invests in U.S. middle-market private companies through various forms of debt and equity investments [3] Group 2 - PennantPark Investment Advisers, LLC manages $8.9 billion of investable capital and offers a range of financing solutions to middle-market borrowers [4] - The firm has been operational since 2007 and is headquartered in Miami, with additional offices in major U.S. cities and Amsterdam [4]

MIAMI, Jan. 02, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the “Company”) (NYSE: PNNT) announced that PennantPark Senior Loan Fund, LLC (“PSLF”) through its wholly-owned and consolidated subsidiary, PennantPark CLO X, LLC (“CLO X”) has closed a four-year reinvestment period, twelve-year final maturity, $400.5 million debt securitization in the form of a collateralized loan obligation (“CLO”). The debt issued in the CLO (the “ Debt”) is structured in the following manner: ClassPar Amount($ ...

PennantPark Investment Corporation (NYSE: PNNT ) is a BDC, which I have decided to avoid starting from the moment, when I took a closer look and issued my first article early January, this year.Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other pol ...

When I last covered PennantPark Investment Corporation (NYSE: PNNT ), the BDC had reported record net investment income (NII) on the back of the special dividend from Dominion Voting systems. At the time, the BDC had an excellent NII dividend coverage ratioI am a young individual investor with a strong focus on long-term wealth creation. My investment strategy revolves around selecting stocks with strong growth potential as well as stocks with stable dividend yields. I firmly believe that patience is key, a ...

PennantPark Investment Corporation (NYSE:PNNT) Q4 2024 Results Conference Call November 26, 2024 12:00 PM ET Company Participants Art Penn - Chairman and Chief Executive Officer Rick Allorto - Chief Financial Officer Conference Call Participants Mark Hughes - Truist Robert Dodd - Raymond James Paul Johnson - KBW Melissa Wedel - JPMorgan Casey Alexander - Compass Point Operator Good afternoon, and welcome to the PennantPark Investment Corporation's Fourth Fiscal Quarter 2024 Earnings Conference Call. Today's ...

For the quarter ended September 2024, PennantPark (PNNT) reported revenue of $36.5 million, up 7.2% over the same period last year. EPS came in at $0.22, compared to $0.24 in the year-ago quarter.The reported revenue represents a surprise of +0.36% over the Zacks Consensus Estimate of $36.37 million. With the consensus EPS estimate being $0.22, the company has not delivered EPS surprise.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare t ...

PennantPark (PNNT) came out with quarterly earnings of $0.22 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this business development company would post earnings of $0.22 per share when it actually produced earnings of $0.24, delivering a surprise of 9.09%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.PennantPark, wh ...

Financing and Debt Issuance - The company issued $150.0 million in 2026 Notes at a public offering price of 99.4%, with a 4.50% annual interest rate, maturing on May 1, 2026[19]. - In October 2021, the company issued $165.0 million in 2026 Notes-2 at a public offering price of 99.4%, with a 4.00% annual interest rate, maturing on November 1, 2026[19]. - The company had outstanding borrowings of $461.5 million under the Truist Credit Facility, $150.0 million of 2026 Notes, and $165.0 million of 2026 Notes-2, totaling $776.5 million in consolidated debt[88]. - The weighted average annual interest rate on the company's debt was 6.0% as of September 30, 2024[88]. - The 2026 Notes and the 2026-2 Notes are unsecured and effectively subordinated to any secured indebtedness, including the Truist Credit Facility[125]. - The indenture for the 2026 Notes and the 2026-2 Notes offers limited protection to holders, allowing the company to incur additional indebtedness without restrictions[128]. - The company may redeem the 2026 Notes and the 2026-2 Notes at its option, which could adversely affect returns for investors[129]. - Payments made under the 2026 Notes to foreign entities may be subject to a 30% U.S. withholding tax under FATCA provisions[134]. Investment Strategy and Portfolio Composition - The company targets an investment size of $10 million to $50 million in securities of middle-market companies, which are typically highly leveraged and often unrated[20]. - The portfolio is expected to consist primarily of first lien secured debt, second lien secured debt, subordinated debt, and equity investments, with up to 30% in non-qualifying assets[22]. - The principal investment focus is on providing first lien secured debt, second lien secured debt, and subordinated debt to U.S. middle-market companies across various industries[34]. - The Business Services industry constitutes 18% of the consolidated portfolio assets, followed by Distribution at 16% and Healthcare, Education, and Childcare at 12%[36]. - The company is focused on industries such as Aerospace and Defense, Financial Services, and Environmental Services among others[34]. - The company primarily invests in first lien secured debt, second lien secured debt, subordinated debt, and selected equity investments, which carry varying levels of risk[104]. Management and Advisory Fees - The Investment Management Agreement allows the Investment Adviser to manage day-to-day operations and provide investment advisory services[36]. - The Investment Adviser receives a base management fee and an incentive fee for its services[36]. - The base management fee for the company is set at an annual rate of 1.50% of average adjusted gross assets, reduced to 1.00% for gross assets exceeding 200% of total net assets as of the previous quarter-end[38]. - For the fiscal years ended September 30, 2024, 2023, and 2022, the Investment Adviser earned base management fees of $16.7 million, $16.5 million, and $19.8 million, respectively[38]. - The incentive fee structure includes a hurdle rate of 1.75% per quarter, with 100% of Pre-Incentive Fee Net Investment Income above this rate up to 2.1212% and 17.5% on amounts exceeding 2.1212%[38]. - For the fiscal years ended September 30, 2024, 2023, and 2022, the Investment Adviser earned incentive fees of $12.7 million, $13.9 million, and $2.7 million, respectively[38]. Regulatory Compliance and Taxation - The company must distribute at least 90% of its ordinary income and realized net short-term capital gains to maintain its RIC tax election[59]. - To qualify as a RIC, the company must derive at least 90% of its gross income from specific sources, including dividends and interest[59]. - The company is subject to federal income tax on any investment company taxable income or net capital gains that are not distributed[60]. - If the company fails to qualify as a RIC, it will be subject to corporate-level federal income tax on all taxable income, reducing the amount available for distribution to stockholders[63]. - The company is required to accrue a capital gains incentive fee based on net realized capital gains and net unrealized capital appreciation and depreciation[42]. - The company is required to review its compliance with the Sarbanes-Oxley Act and related regulations regularly[58]. - The company has adopted written policies to prevent violations of federal securities laws and reviews these policies annually[56]. Risks and Challenges - The company faces risks associated with changes in interest rates that may affect its cost of capital and net investment income[75]. - Rising interest rates could lead to increased defaults among portfolio companies unable to pay escalating interest amounts[75]. - The company has identified material weaknesses in its internal controls over financial reporting, which could negatively impact investor confidence and stock price[78]. - The company may struggle to meet its Annual Distribution Requirement due to recognizing income before receiving cash, potentially leading to adverse financial effects[82]. - The company is dependent on its Investment Adviser’s key personnel for future success, and any loss of management could significantly harm its investment objectives[75]. - The company may face challenges in raising additional capital on favorable terms, which could restrict its ability to pay distributions or issue senior securities[84]. - The company may face increased risks associated with leverage, as any decrease in asset value could lead to a greater decline in NAV attributable to common stock[88]. - The company may experience fluctuations in quarterly results due to factors such as interest rates on debt securities and competition in the market, with future decreases in fair value of debt expected to increase NAV[93]. Investment Performance and Valuation - The company is required to determine fair value for each investment on a quarterly basis, with unrealized appreciation or depreciation recorded in the Consolidated Statements of Operations[101]. - The company utilizes independent valuation firms to assist in determining the fair value of its investments, considering various factors including collateral value and market conditions[101]. - The company invests in illiquid assets, and its valuation procedures may result in recorded values that differ materially from actual values upon disposition[99]. - The company may incur significant costs related to potential stockholder activism, which could divert management's attention and resources[98]. - The company may face risks due to the illiquidity of its investments, which may lead to significant losses if liquidation is required during unfavorable market conditions[102]. Market and Economic Conditions - Economic recessions or downturns could lead to increased non-performing assets and decreased portfolio value, adversely affecting revenues and net income[107]. - The company may face challenges in accessing capital markets during economic downturns, which could limit its ability to grow or refinance debt[107]. - A general disruption in credit markets could impair the company's ability to maintain the asset coverage ratio required by the 1940 Act, potentially affecting its status as a BDC[103]. - Public health emergencies could significantly disrupt the company's operations and adversely impact the fair value of its investments[138]. - Inflation may negatively affect the operating results of the company's portfolio companies, impacting their ability to pay interest and principal on loans[135]. - Volatility in capital markets could materially impact the company's asset valuations and net asset value (NAV), affecting its ability to raise capital[137]. Corporate Governance and Conflicts of Interest - The board of directors has the authority to modify operating policies and strategies without prior notice, which could impact the company's business and stock value[98]. - There are significant potential conflicts of interest that could impact investment returns, as the Investment Adviser may prioritize its own interests over those of common stockholders[92]. - The company may co-invest with affiliates, which could lead to conflicts in allocating investment opportunities[92]. - The company has entered into a License Agreement with PennantPark Investment Advisers for a royalty-free non-exclusive license to use the name "PennantPark," which will expire under specific conditions[93]. Legal and Regulatory Risks - Changes in laws or regulations could adversely affect the company's business and operations, particularly in the context of increased regulatory scrutiny on non-bank lending[97]. - The company may face increased scrutiny regarding compliance with anti-corruption laws, which could adversely affect its operations[139]. - The company may face securities litigation if the trading price of its common stock fluctuates significantly, which could divert management's attention and resources[141]. - Economic sanctions may restrict the company's investment activities in certain jurisdictions, leading to potential legal and monetary penalties[139]. - Compliance with data protection and privacy laws is increasingly complex, with potential for significant costs and regulatory penalties as these laws evolve globally[140].

Financial Performance - For the fiscal year ended September 30, 2024, the investment portfolio totaled $1,328.1 million, with net assets of $493.9 million and an adjusted net asset value per share of $7.56, reflecting a quarterly increase of 0.5%[4] - Net investment income for the fourth quarter was $14.4 million, or $0.22 per share, while for the fiscal year it was $60.1 million, or $0.92 per share, showing a decrease from $15.6 million and $65.5 million in the prior year[20] - For the year ended September 30, 2024, total investment income was $143.8 million, a decrease from $145.4 million in the previous year, primarily due to a decrease in dividend income[17] - The company reported total investment income of $143.8 million for the year ended September 30, 2024, compared to $145.4 million in 2023[36] - The net increase in net assets resulting from operations was $48.9 million, or $0.75 per share, compared to a net decrease of $(33.8) million, or $(0.52) per share for the prior year[24] Distributions - The company declared distributions of $0.24 per share for the fourth quarter and $0.88 per share for the fiscal year, compared to $0.24 and $0.88 in the previous year[20] - The company declared distributions of $0.88 per share for the year ended September 30, 2024, totaling $57.4 million, an increase from $0.76 per share and $49.6 million in the prior year[30] Investment Activity - For the year ended September 30, 2024, the company invested $774.6 million in 41 new and 81 existing portfolio companies, with a weighted average yield of 11.7%[9] - The weighted average yield on debt investments at quarter-end was 12.3%, with a portfolio consisting of 152 companies and an average investment size of $8.1 million[7] - The company announced an additional investment of $52.5 million in the PennantPark Senior Loan Fund, increasing the joint venture's investment capacity to over $1.5 billion[12] Portfolio Status - As of September 30, 2024, the company had two portfolio companies on non-accrual status, representing 4.1% and 2.3% of the overall portfolio on a cost and fair value basis, respectively[7] - The total investments at fair value as of September 30, 2024, were $1.328 billion, compared to $1.101 billion in 2023, reflecting a significant increase in investment value[33] Expenses and Borrowings - Total expenses for the fiscal year were $83.7 million, up from $79.8 million in the prior year, mainly due to increased debt-related interest expenses[18] - As of September 30, 2024, the company had $461.5 million in outstanding borrowings under the Truist Credit Facility, with a weighted average interest rate of 7.2%[26] - The company had $13.5 million of unused borrowing capacity under the Truist Credit Facility as of September 30, 2024, down from $262.6 million in the previous year[26] Cash Flow - Operating activities used cash of $(172.4) million for the year ended September 30, 2024, while financing activities provided cash of $183.4 million[28] - Cash and cash equivalents as of September 30, 2024, were $49.9 million, up from $38.8 million in the previous year, indicating improved liquidity[27] Unrealized Gains and Losses - The company reported net realized gains of $2.5 million for the fourth quarter, while the fiscal year saw net realized losses of $(33.6) million[21] - The net change in unrealized appreciation (depreciation) on the Credit Facility for the year ended September 30, 2024, was $(4.4) million, compared to $(3.8) million in the prior year[23] Forward-Looking Statements - The company emphasizes that all statements other than historical facts are forward-looking and involve risks and uncertainties[41] - The company anticipates that actual results may differ materially from forward-looking statements due to various factors[42] - The information provided does not constitute specific legal, tax, or accounting advice, and the company advises consulting qualified professionals[43]